Admitting New Partners Myles Etter and Crystal Santori are partners who share in the income equally and have capital balances of $222,000 and $93,000, respectively. Etter, with the consent of Santori, sells one-third of his interest to Lonnie Davis. a. What entry is required by the partnership if the sales price is $60,000? If an amount box does not require an entry, leave it blank. fill in the blank 0b7edefb8011019_2 fill in the blank 0b7edefb8011019_3 fill in the blank 0b7edefb8011019_5 fill in the blank 0b7edefb8011019_6 b. What entry is required by the partnership if the sales price is $90,000? If an amount box does not require an entry, leave it blank. fill in the blank 5aa9c705f072fc1_2 fill in the blank 5aa9c705f072fc1_3 fill in the blank 5aa9c705f072fc1_5 fill in the blank 5aa9c705f072fc1_6
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Admitting New Partners
Myles Etter and Crystal Santori are partners who share in the income equally and have capital balances of $222,000 and $93,000, respectively. Etter, with the consent of Santori, sells one-third of his interest to Lonnie Davis.
a. What entry is required by the
| fill in the blank 0b7edefb8011019_2 | fill in the blank 0b7edefb8011019_3 | ||
| fill in the blank 0b7edefb8011019_5 | fill in the blank 0b7edefb8011019_6 |
b. What entry is required by the partnership if the sales price is $90,000? If an amount box does not require an entry, leave it blank.
| fill in the blank 5aa9c705f072fc1_2 | fill in the blank 5aa9c705f072fc1_3 | ||
| fill in the blank 5aa9c705f072fc1_5 | fill in the blank 5aa9c705f072fc1_6 |
Partnership: It is the relationship where two or more parties having compatible vision, values, and goals, from an agreement to do something together. A partnership also requires a commitment not only to the business but to each other and to the good.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
